The moment you've all been eagerly anticipating has arrived: the launch of the MerlinSwap governance token! Just two months after our inception, we committed to issuing a token once we could demonstrate that Merlinswap was adding substantial value to the ecosystem and that introducing a token would expedite this process. That milestone has been achieved.

Essence of Value

Navigating through DeFi often feels like traversing a minefield, with many projects promising much but delivering little. Initially, these projects might ride a wave of social media buzz and high yield farming incentives, temporarily boosting their token prices and misleading the less savvy investors. However, as the incentives dwindle, such projects tend to fade away into the depths of the DeFi protocols, forgotten within the vast expanse of the metaverse.

We propose a different approach: start without a token, concentrate on developing a valuable product and fostering a vibrant community, and then, as we are now doing, retroactively reward our community with the token. This approach not only rewards our loyal users but also ignites the journey towards a decentralized model, creating genuine value.

In recent months, MerlinSwap has facilitated trades exceeding $200 million, enhanced our cherished swap user interface, and rewarded early users with over 400,000 VOYA through airdrops. This lays a robust foundation for the future growth of Merlinswap.

Our Vision

MerlinSwap stands as the 1# Decentralized Exchange in Bitcoin ecosystem, aimed to become the liquidity hub for BTC and Bitcoin eco-assets, including BRC20, BRC420 and native tokens across Merlin Bitcoin layer2.

User Experience: From day one, our user experience has attracted users to Merlinswap, thanks to features like our Fair Price Indicator, Your Tokens panel, and Magic Bar. We are committed to enhancing this experience further by supporting additional wallets and listing new tokens promptly.

Capital Efficiency: Although simple AMMs are beautifully straightforward, they lack capital efficiency. Following in the footsteps of Uniswap v3, we see significant potential for further innovation in AMMs to enhance our core offering's capital efficiency post-token launch.

CEX-like Experience: MerlinSwap enables non-custodial limit orders via DLAMM, allowing users to place orders at specific prices without the risks of slippage or front-running. This feature aims to provide a seamless bridge for CEX users to transition to a decentralized, automated trading platform without sacrificing the familiar limit order experience.

Achieving these ambitious objectives requires aligning the incentives of developers, liquidity providers, and traders, a task we believe the MP token is perfectly suited for.

Accelerating Value Creation

A governance token's primary role is to hasten value creation within a project, allowing it to stand out in a competitive and evolving ecosystem. When utilized effectively, a governance token serves as a democratic tool to attract contributions from a wide range of participants, pooling together their ideas, skills, and liquidity. As the crypto sector becomes ever more pivotal to the global economy, DeFi stands as a beacon for establishing a more equitable economic paradigm.

Token Details

Name: MerlinSwap Token

Ticker: MP

Chain: Merlin

Total Supply (Max): 21,000,000,000 MP

MP allocation

Public Sale (6%)

6% of tokens will be allocated to the public sale. This ensures a wide distribution of the tokens and active participation in the ecosystem development by Merlin native token holders.

Distribution schedule:

• Lockup: none

• Vesting: none

Airdrop (20%)

The Community has been allocated 20% of the token supply. Merlinswap wouldn’t be possible without a thriving community of supporters. 4% of this allocation will be unlocked at TGE and will be distributed during the initial phases of the TGE, including the TGE-related airdrop (and related activities). The airdrop will be distributed in the form of esMP tokens, rather than MP tokens directly. The esMP tokens can be credited back to your wallet immediately. For those looking to convert their esMP into MP tokens, a vesting option is available. By vesting your esMP, they will be linearly converted to MP tokens over a 30-day period at a 1:1 ratio. For the Airdrop details, please refer to LINK.

The first 4% of the esMP token distribution schedule:

• Lockup: none

• Vesting: linear, 30 days

The remaining 16% of the esMP token will be determined through community proposals and voting. This approach empowers MerlinSwap’s community, to directly influence how rewards are distributed, ensuring that our actions are always aligned with community’s expectations and interests.

Distribution schedule:

• Lockup: decided by community

• Vesting: linear, 30 days

Trading Rewards (24%)

24% of tokens will be allocated to the trading reward. The Trade-to-Earn program allows users to earn extra rewards while continuing the usual trading activities. This program isn't just a one-time event but a continuous, 12-month earning opportunity. The reward will be distributed in the form of esMP tokens, rather than MP tokens directly.

Distribution schedule:

• Lockup: none

• Vesting: 12 months

Merlinswap Treasury & LP (33%)

33% of tokens will be allocated to the MerlinSwap Treasury, which ties the value of the MP token to MerlinSwap itself. The accumulated fees may be used to fund development, manage the token supply through buy-backs, or other initiatives that support the long-term health of the protocol. Part of the tokens in the treasury were also distributed via mining, farming and other liquidity incentivization schemes to boost the protocol's long term growth.

Distribution schedule:

• Lockup: 1 month cliff

• Vesting: linear, 48 months

Genesis Liquidity Treasury (9%)

5% of the initial token supply will be paired with BTC and other selected ranges and deposited as liquidity to support MP swaps at launch. 4% of the initial token will be used for long-term market making.

Distribution schedule:

• Lockup: none

• Vesting: none

Marketing (2%)

2% of tokens will be allocated to the MerlinSwap marketing expansion activities, including marketing campaigns and eco collaborations.

Distribution schedule:

• Lockup: none

• Vesting: linear, 30 days

MerlinSwap Team (6%)

MerlinSwap contributors will receive 6% of the tokens, strongly incentivizing them to seek the long-term health of the protocol and overall ecosystem.

Distribution schedule:

• Lockup: 12 months

• Vesting: 12 months

Conclusion

This token model is created to bootstrap the MerlinSwap ecosystem with well-aligned incentives for key stakeholders and traders.

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